The closer a domestic lease in Harehills nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Harehills will meet the qualifying criteria; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Harehills with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with undertake Harehills lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Twenty four months ago Liam, came very near to the eighty-year threshold with the lease on his leasehold apartment in Harehills. In buying his property two decades ago, the length of the lease was of no bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Liam extended the lease just under the wire last August. Liam and the landlord eventually settled on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by at least £925.
In 2013 we were e-mailed by Dr Ben Jones who, having purchased a one bedroom flat in Harehills in February 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Harehills with a long lease were valued about £275,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish in 2103. Taking into account 77 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.
Mr G Nelson bought a garden flat in Harehills in June 2002. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar residencies in Harehills with an extended lease were worth £181,200. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 14 November 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus expenses.